Fully remote work may reduce productivity by at least 10%, report finds

The jury is still out on whether remote work is better than in-person. And while there are various factors to consider, a new paper provides a glimpse at the latest insights on remote worker productivity.

The Stanford Institute for Economic Policy Research released a working paper in July that found fully remote employees may be less productive than in-office workers. However, as Monster Career Expert Vicki Salemi told HR Brew, this doesn’t mean that remote work doesn’t work—just that employers may need to get creative to reengage employees.

The data. Stanford found that 40% of US employees currently work from home at least one day a week, and slightly more than one in 10 are fully remote. Those who are fully remote, the institute suggested, are around 10% less productive than those who are fully in-person. The paper also examined the effectiveness of hybrid workers—classified as going into the office at least one day per week—and determined they are equally or slightly more productive than their full-time, in-office counterparts.

The paper points to communication challenges as a potential cause of lower productivity in fully remote workers. However, creativity, motivation, and self control may also be lower in some remote settings.

Regardless, some businesses say the remote-first model is still working for them, while companies that require workers to be in the office full-time are having a hard time recruiting talent, Time reported. “We’re doing [remote work] unequivocally and we’re winning faster than everybody else,” Scott Farquhar, co-CEO of Australia-based software company Atlassian, told Time.

What to do. Salemi told HR Brew that employers have options to help remote teams stay motivated and productive. First, HR should think about fun and interesting ways to engage employees. “If it’s sales quotas, make a healthy competition or contest at work with prizes, or award bonuses,” she said.

Salemi also said it’s not enough for managers to have consistent check-ins with employees—they should be meaningful. “Maybe more frequent check-ins, like a 10-minute call, once a week,” she said. She also recommended AMA-style question-and-answer sessions with leadership.

For employees in need of more communication and connection, Salemi said HR should consider a mentorship program or buddy system, and not just for new hires. “Sometimes the new hires get more attention than the people that have been there a while,” she said. “It’s important to make sure that everyone feels like they are being recognized and rewarded and also thanked for their good work.”

Finally, Salemi suggested that HR and managers not wait until midyear or year-end reviews to talk with employees about their career trajectory, goals, and needs. The employee may need more flexibility for childcare, education, or other aspects of life, and having it will likely impact their productivity, according to Salemi. “Ask them what they want from their career and how they can best support them, and have meaningful conversations,” she said. “It’s not a one-size-fits-all approach.”